Pakistan’s economy on path to recovery, says PM at PSX ceremony

KARACHI: Prime Minister Shehbaz Sharif visited the Pakistan Stock Exchange (PSX) in Karachi for the first time on Wednesday, marking a significant occasion after the PSX was recognised globally as the second-best performer.

During the ceremony, PSX CEO Farrukh Sabzwari revealed that Pakistan had secured agreements with three major Chinese stock markets. He also highlighted the positive impact of a significant reduction in the policy rate on the market. “The stock market’s progress is a reflection of the government’s effective policies,” Sabzwari remarked.

Federal Finance Minister Muhammad Aurangzeb spoke next, expressing optimism about the nation’s economic future. He pointed out that inflation rates were finally starting to ease, thanks to the government’s stabilisation efforts.

“In recent months, we’ve achieved key economic milestones,” he said, adding that the improving stock market is a sign of growing investor confidence in the country.

Aurangzeb also credited the IMF agreement for helping steer the economy towards recovery, and he highlighted ongoing reforms, including the digitalisation of the Federal Board of Revenue (FBR). He stressed the government’s focus on cutting unnecessary costs and restructuring loss-making state-owned enterprises.

Deputy Prime Minister Ishaq Dar acknowledged the nation’s economic recovery but reminded the audience of Pakistan’s heavy external debt, which amounts to 130 billion dollars. Reflecting on the past nine years since the stock markets merged, Dar said,

“What started as a small seed has grown into a strong tree.” Despite the challenges, he expressed confidence in Pakistan’s path forward, underlining the leadership of Prime Minister Shehbaz Sharif.

In his address, Prime Minister Shehbaz Sharif congratulated the PSX team for their outstanding performance. He credited their hard work for the positive change, calling the stock market’s success just the beginning of Pakistan’s journey towards economic stability.

“This is not the end, but the first step,” he said, stressing that while economic stability had been achieved, growth remained the ultimate challenge. He offered to meet with stakeholders, ready to listen to their feedback, no matter how tough it might be.

Sharif also celebrated Karachi’s revival, noting that the city’s once-dimmed lights had returned, symbolising its economic rebirth.

“Our economy is once again standing tall,” he said. He called for unity in working together to move the country forward and reaffirmed Pakistan’s vast natural resources and economic potential.

With the policy rate now reduced to 13 per cent, Sharif hinted at the possibility of further cuts in the future.

Read next: PSX opens strong, surpasses 117,000-point mark